Chennai: As consumers are aggressively moving to online shopping, brands are finding it difficult to retain customer attention and brand loyalty. Having said that, Indian consumers are highly price sensitive. To woo the shoppers, deals and offers are in abundance. But identifying and acquiring a potential customer is tricky and even difficult for the online players.
Ad-tech start up Airloyal is offering a solution in this space. This digital mobile advertisement company is trying to revolutionise advertising through its app Ladooo. The users of Ladooo get free rewards like data packs, free mobile recharges, DTH recharges and so on for their activities online.
“It is a win-win situation for advertisers and consumers,” said Raja Hussain, founder and CEO, Airloyal. Airloyal works with over 200 advertisers like Quikr, Flipkart, Amazon, Snapdeal etc. On the other hand, they have about eight million users for the Ladooo app.
“Our app users have to complete some specific app-related task like downloading the advertisers’ mobile app or answering a survey. Once they complete the task they get instant rewards.”
While advertisers gain from highly cost effective and insightful engagement through Ladooo, consumers get more disposable income. “Our revenue model is based on charging our clients, who wants consumer engagement for their products on Ladooo, based on cost per engagement. When the end consumers complete the tasks, we give away part of this CPE to them in the form of mobile data, talk time etc,” said Mr Hussain, who is a Chennai based serial entrepreneur.
Before starting Airl-oyal along with his friend Prassana Jagan-athan, Mr Hussain was the part of the core founding team at Roamware, a mobile carrier technology now called as Mobileum Inc. He also founded ‘Funspot’, a mobile social entertainment company.
Along with their personal savings, the team raised a small seed capital from an angel investor from Australia initially. With an initial investment of about half a million dollar, the company got one million users in its inception year.
“We are now growing fast and are able to add almost a million users a month,” he claimed. Apart from India, the company also has expanded to Indonesia. “We have aggressive plans. We want to expand our services in South East Asian markets and also want to double our current user base. We are also planning to increase out revenue. Currently we make about 4-5 million dollar per year,” Raja said.